(a) Did the fair value of medium-term note due 2018-2027 increase, decrease or not change during fiscal year 2017?

Circle one: Increased Decreased Not Changed How can you tell?

(b) List two possible economic reasons why fair values would stay the same or change.

(c) What is a potential drawback of measuring liabilities at fair values?

$ 750 $ 105 1,000 200 500 250 300 1,250 750 105 1,000 200 500 250 300 1,250 Equipment Operations U.S. dollar notes and debentures: 4.375% notes due 2019 8-1/2% debentures due 2022 2.60% notes due 2022 6.55% debentures due 2028 5.375% notes due 2029 8.10% debentures due 2030 7.125% notes due 2031 3.90% notes due 2042 Euro notes: Medium-term notes due 2020 2023: (principal 850 - 2017) Other notes Less debt issuance costs Total Financial Services Notes and debentures: Medium-term notes due 2018 2027: (principal $18,678 - 2017, $17,203 - 2016) based on market interest rates of 1.7% - 2017, 2% - 2016 5% senior note due 2022: ($500 principal) Other notes Less debt issuance costs Total Long-term borrowings 990 166 20 5,491 231 21 4,565 18,601 17,434 _502. 519 1,339 1,221 42 36 20,400 19,138 $25,891 $23,703 $ 750 $ 105 1,000 200 500 250 300 1,250 750 105 1,000 200 500 250 300 1,250 Equipment Operations U.S. dollar notes and debentures: 4.375% notes due 2019 8-1/2% debentures due 2022 2.60% notes due 2022 6.55% debentures due 2028 5.375% notes due 2029 8.10% debentures due 2030 7.125% notes due 2031 3.90% notes due 2042 Euro notes: Medium-term notes due 2020 2023: (principal 850 - 2017) Other notes Less debt issuance costs Total Financial Services Notes and debentures: Medium-term notes due 2018 2027: (principal $18,678 - 2017, $17,203 - 2016) based on market interest rates of 1.7% - 2017, 2% - 2016 5% senior note due 2022: ($500 principal) Other notes Less debt issuance costs Total Long-term borrowings 990 166 20 5,491 231 21 4,565 18,601 17,434 _502. 519 1,339 1,221 42 36 20,400 19,138 $25,891 $23,703